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tv   The Kudlow Report  CNBC  February 26, 2014 7:00pm-8:01pm EST

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words books in maplewood, new jersey. my local bookstore. not only will i be signing copies of my new book "get rich carefully." i'll be taking questions. see me tomorrow. it always there's always a bull market somewhere and i try to find it just for you on here on "mad money." i'll see you tomorrow. \s. the bail is off, major new supply-side pro-growth tax reform plans, that's from ways and means chairman dave kamf. and i don't understand why top republican leaders are trashing it. congressman camp will join us live tonight to talk about his plan. also this even harry reid says all the well-documented stories of obamacare paying enough people are not true. really, mr. leader? he blames the koch brothers.
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we have another horror story to tell you about. wait until you see the confusing, even threatening obamacare tax language in the new tax forms that no one understands. the down side of marijuana is out there. while everyone focuses on the financial effect of colorado's legal pot industry, tonight cnbc will premiere a new documentary that also looks at the dangers of this gateway drug and the serious challenge now facing colorado's parents. all those stories and much more coming up in "the kudlow report" beginning right now. ♪ good evening, everyone. i'm larry kudlow. this is "the kudlow report." we are live here at 7:00 p.m. eastern, 4:00 p.m. pacific. we have three developing stories for you right at the top of the show. first let's go to arizona, where everyone is waiting for arizona governor jan brewer to sign or
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veto a controversial sexual orientation discrimination bill. nbc news' jay gray is live in phoenix for us this evening. good evening, jay. i hear there's some movement going on. >> reporter: there is, larry. good evening. we are now learning within the next 45 minutes arizona governor jan brewer will come out and speak about her decision, what she has decided to so with sb-1062. a lot of people have said this is a controversial bill that would allow businesses to not serve people based on their sexual preference or anything else for that matter, and there have been a lot of businesses stepping to the plate saying something's got to be done, including the nfl with a super bowl schedule to be here next year. the nfl has said, look, we're considering everything as this bills continues to make its course through the legislature, now to the governor's office. delta, american airlines, apple, southwest airlines, all asking
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the governor to veto it. she came into today from a trip from washington. she sat down and talked to opponents and proponents, and said she'll make a decision. now within the last 15, 20 minutes we've learned we will learn more about that decision in 45 minutes or so, larry. >> we will take governor brewer live when she comes out. jay gray, i hope you stick around to figure out what it is she's going to say. >> reporter: i will. that's nbc's jay gray. in minnesota today president obama unveiling a plan to spend on transportation infrastructure. we also have some breaking news on the keystone pipeline. cnbc's own bertha coombs has the details. >> hi, larry, the state step's snipper general said there was no conflict of interesting to choose a contractor. there had been questions about the contractor, because it had done work for transcanada.
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but because everything was closed beforehand, the ig report finds there was no conflict. president obama in the meantime visited the union depot train station in minnesota to announce a new inextra structure spending plan, $302 billion over four years to mix and maintain roads and train lines. it says the spending will stimulate the economy and create jobs, but he knows it has little chance of happening this year with republicans in control of the house. >> infrastructure didn't used to be a partisan issue. everybody uses roads, ports, airports. unfortunately time and again over the past few years there's been some in congress who have refused to act on common-sense proposals to create jobs and grow our economy. partly it's not that they don't like roads. they just don't want to pay for them. >> the president proposes paying for this spending with what we
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calls pro-growth business tax reform. in other words, larry, closing tax loopholes. >> right. closing tax loopholes. oh. >> one person's tax loophole is another person's deduction. >> yeah, right, we'll hear much more in just a minute. thank you very much. let me get a quick take from our special guest this evening. i think of him as my co-host. jared bernstein, and our old pal steve moore, the new chief economist for the heritage foundation. i want to give you one swing at the ball, just one swing at the ball, because we've got bigger fish to fry. steve moore, $300 billion of infrastructure spending, what's wrong with that in your view? >> sounds like more shovel-ready projects that didn't work, but the way to regenerate growth, tax reform.
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i love what dave camp wants to do. >> jared, what's your take and the tax hike to finance it? >> i'm surprised to hear that steve doesn't believe we need to invest in our infrastructure. like the president said historically it has been very much a bipartisan issue. you talk about progrowth, ask any business person whether the united states infrastructure is up to snuff compared to our competitors. they'll tell you no, and guess what? you have to pay for it. >> we need pipe pipelines. >> i said one swing. wait. wait. i'm giving a reprieve. go ahead, steve. one more bat here. >> the infrastructure we need in this country is pipelines. the private sector will pay for that as long as president obama lets it happen. >> hey, i've been on this show from the beginning saying as long as that oil is coming out of the ground it's going to a pipeline somewhere. the problem you have is a nebraska judge. >> no, they fixed that.
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nebraska, the governor has fixed that. the announcement from the state department that this contractor was on the level, they wouldn't have made this announcement if they weren't moving in the direction of yes on the keystone pipeline. >> i agree. >> i actually think it's coming. i actually think this is kind of weird state department language that is very helpful for those of us who believe we should have the pipeline. by the way, jared, i'm all for building. i know you started digging holes, putting dirt back in the holes. >> we're talking infrastructure. >> i'm all for long-range building and infrastructure, 8 or 10 years, not cyclical stuff, but i am not for raising taxes on businesses just for the sake of financing. >> he wants to cut the tax rate, 35 to 28% on the corporate rate. >> i know, he does on mondays, but he doesn't on tuesdays -- >> today is wednesday. hang around, stick around, jared and steve. they'll be back. now we have the main event.
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he's about to join us, going to be live to talk about the controversial tax reform plan, which i believe has some warts, but definitely moves the ball in the right pro-growth, and can you believe that harry reid said this on the senate floor today about all the well-documented and true stories of real people who have been hurt by obamacare failius? listen to this. >> despite all that good news, there's plenty of horror stories being told, all of them untrue, but being told all over america. >> yeah, that's great. part of that arrive is he blames the koch brothers for all these bad stories. anyway, it's all been documented. we'll talk later in the show about mr. reid's outrageous comment and the latest true story of obamacare tax confuse. in a few minutes, i'm going to explain why we need to stop everything with a moratorium. first up, don't forget free market capitalism is always the best pat to prosperity.
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we're going to talk about supply-side tax reform. please stay with us.
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to nbcuniversal's coveragens of the biggest loserance. olympic winter games ever, with the most coverage of the most events on every device. and the most hours of streaming video on the nbc sports live extra app, including the x1 platform from xfinity. comcast was honored to bring every minute of every medal of nbcuniversal's coverage to every screen. so what's next? rio 2016. welcome to what's next. comcast nbcuniversal. all right. we turn back to our two panelists jared bernstein and steve moore. we're waiting for mr. camp to
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get hooked up and so forth and connected. let me go to you, jared. first up, you had a few remarks, where, in the "new york times" today? what's your beef here? seven rates down to two, the tax rates themselves come down, both personal and corporate. this sounds like classic 1986 pro-growth reagan rostenkowski. why aren't you for this? >> there's a lieutenant of this that i like. what i put down in my piece is that it has one fundamental flaw. i'm glad we're getting to it before you talk to congressman camp. the flaw is that it's probably not really revenue neutral and certainly not in the second ten years. there's about four timing gimmicks that pull revenue forward in the first decades, and lose it in the second one. i'm worried about revenue neutrality, and he won't achieve it in the second decade. >> but steve moore, i'm pretty
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impressed the joint tax committee is scoring this in a dynamic way, lower rates produce a lot more economic growth, a lot more revenues. in fact they have 1% to 1.5% higher gdp per year. i can't imagine asking for any more than that? >> yeah, if you take into effect the growth effects of this plan be reducing tax rates, especially on the corporate side, which would bring you towards the international average, now the highest corporate tax in the world, you're talking about $700 billion at a minimum, so jared, i think you have the story wrong here. i think it will generate a lot of economic growth, and larry, i would like to see that extra revenue used to lower the rates even further. >> just to be clear, i thought the $700 billion is the maximum, you said it was in the minimum. i think they said the growth
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range -- to be clear. he really goes after a lot of the loopholes. you are huffing and puffing about that a few minutes ago. >> no, no, no, i can't stand the loopholes, what are you talking about? >> okay. >> you get rid of the loop holes as a way of financing lower marginal tax rate. many loop holes are chronnie capitalism. it's the tax rates that create the incentive. if you tax something less, like individuals and businesses, jared, you get more economic growth. >> i've been arguing with you and steve about that for decades, and i'm not going to fight with the jtc score on that. i will say this, you mentioned the top rate of 25%. that's not correct. the top rate is 35%. >> hang on. i want you both -- we've got to get out of the batter's box. joining us to explain the proposal is how ways and means chairman dave camp of michigan.
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mr. carom, first of all, welcome back to the show. it's great to have you back. >> great to be back, larry. >> let me ask you, i'm an old reagan guy, you promised lower marginal tax rates in in return for -- i say that's pro-growth. it looks like it's being scored as pro-growth, but, sir, let me ask you, you've heard this today. i'm getting e-mails, and texts and everything and tweets from conservative friends of mine. they had two big beefs. number one, why are you raising the tax on banks? and number two, why did you create this ten-percentage point surcharge on the upper end, which really gives you a third bracket of 35%? >> right. well, first of all, let me say 99% of taxpayers, their top rate, is going to be 25. when i was in school 99% was an "a." as a result of the fiscal cliff at the end of last year, it was
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important to keep what we call the distribution lane neutral code, which is top incomes will not get a tax cut. this is still a rate reduction from current law, by the way. it is a surcharge. because it's on a different definition of income. for example, production income, manufacturing, those will all be a top rated 25%. so the op was to get at much income at as lower rate as possible, but there is a surcharge that goes to 35. you know, i don't care really what people call it. >> how about the banks? banks -- the reason i mention the banks is team obama is waging a jihad against banks. banks were bailed out many years ago. team obama, they're going after jpmorgan, after bank of america. why are you piling on with another bank tax? >> look, banks and financial institutions are at 35% rate.
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we have the highest corporate rate in the world. in the '80s we had the lower rate, now we're at the highest, so we bring the corporate rate down to 25% of the top rate. now financial institutions and banks don't have a lot of other items that you can go to pay for that reduction, because this is a revenue-neutral approach. that's how we can get growth in a dynamic score. so to do that, there's a trade-off. they get a tremendous rate reduction. i don't think it would be appropriate to also give them a huge tax cut. so there is a trade-off there. they're getting rate reduction, which is a big benefit to them, and let me just say, by far and away, the vast majority of banks are going to do better under this approach than they are right now. >> well, you're going to have a fight on your hands about that one, but you know about that. some other people are saying to me, you know, this is not a middle-class tax cut. what they say is in your plan, you go from 10% to 25% for
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singles at only $35,000. that's all it takes. then for married filing jointly, it would be $71,000. did you know to get to 25% under current law it's $127,500? it doesn't sound like you're providing much middle-class tax relief. and you're tightening up the earned income tax credit as well. why isn't there more relief? >> actually there is relief. i would say $72,000, they actually see tax relief, actually pay less in taxes. we have all of this scored out and all of the details can follow on that. we actually do very well -- let me just say the average middle-class family of four, and median income of $51,000, sees $1300 more in income each and every year under this plan. so i think we're going to do fine on that. that's because we actually grow the economy, create jobs, and as more people work, wages do better, and because rates are
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lower, they do better there as well. >> well, i guess the point i'm making is -- we're not going to fix anything tonight, but the thresholds are surprisingly low to me. when you pass -- i've got 10, 25, and 35. going from 10 to 25 is like really key. that's your incentive or disincentive effect. if you get them, let's use your married filing jointly, sir. if you get them at $71,000, that's not really a lot of tax relief. the old system gave them another $50,000. let's say we collapsed seven rates into two, and by doing that, the 15% rate is at 10, so they do better at the lower income level there, too. and the 28 and 33% rates, those are at 25. so, you know, taxpayers, hard-working taxpayers do better as well as at the lower rates, because collapsing the higher categories are actually
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beneficial. >> some other gripes that i've heard today. this is pretty much not bipartisan griping, putting a cap or eliminating mortgage deductions, tax-exempt bonds, employer health care, and also iras and 401(k)s, let me just say on those items, under this plan, we dramatically increase the standard deduction, so all the other deductions that people are used to taking aren't going to be a as important, because 90% of stacks pairsly filing the standard form. that's a huge simplification that will make it easier for the average per to do their own taxes, save in compliance costs, and that makes it much simpler. yes, we make changes there, but also at the other end, most people will not be tales advantage of those as in the past, because we dramatically take people away from itemizing. >> and lower rates reduce the
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value of these deductions anyway. >> that as well. >> now, corporate tax, you're cutting the top rate from 35 to 25. i think that's great. my first choice would have been abolishing the thing all together, but you're dropping it by ten percentage points. however, you are slowing down the tax write-off through depreciation and capital costs, you're slowing that down. a lot of people believe that's anti-investment and antigrowth. >> well, look, under this plan, totality of it, we grow the economy, we increase jobs, almost 2 million more jobs are created until this. that's certainly a different track record from what we've seen currently. people's incomes do go up, so look, yes, there's a lot of details on this, but i think what we do on the corporate level actually brings us back into a mode that allows us to compete. that's basically the oecd average. a lot of other cunning have cut their corporate rates. we haven't. this is one way we're able to do
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it. we're trying to make this entire plan revenue neutral, because it's important i think as we move forward to have that out there. >> nice. someday we'll abolish the corporate tax all together. you're abolishes the a.m.t. that's pretty nifty. >> yes. >> that wasn't written up very much. >> both individuals and corporate. it's a huge complexity to the code. it's a big simplification that will make a difference to the high-tech states that will lose the state and local tax deduction. that impacts those high income states as well. that's a big positive. you know, democrat member of the committee richie kneales it's been his life's work. we'll be hearing about it more over the next few days. >> will you let individuals who own small businesses, will you let them go to the corporate tax?
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>> yes. >> switch from llc? can they take advantage of that sniismts absolutely. >> that you make a huge difference and big difference in revenues also. >> we saw after '86, because the way the code was written, it -- there's nothing to stop them from going to a corporate form. >> you have the basic dave camp legacy supply-side tax simplification and rate reduction. a lot of us have been waiting for this. i think this opened a big door for everybody. why is it, then, my last question, why is senator mcconnell a down on it, and speaker boehner has been yawning and sort of, you know, not being very enthusiastic about it? this is something they should work on. you're given them a platform, and they can build on it. why aren't they behind you on this. >> look, i'm just not going to settle for things as they are. we have not seen the kind of economy recoveries, the worst recovery from any recession in
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modern times. we're not getting enough growth. kids are having to live with their parents, because they can't have an independent life and get a job. median income has been declining for years. i am not going to settle for a minimum wage economy. we need to be debating the big issue and how we grow this economy and become a pro-growth party and party of opportunity. so, look, i'm just going to move forward. we'll let the american people decide, and one that creates growth in jobs. i think this is a debate we need to have, and i look forward to it. >> amen. i'm with you on that. it's a great beginning. ways and means chairman dave camp of michigan. thank you, sir. we appreciate your time. >> thanks much, larry. >> jared and steve were listening carefully, i hope. we're going to get their quick analysis of the plan. next up, they'll have some major kibitzing on this.
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♪ turn around ♪ every now and then i get a little bit hungry ♪ ♪ and there's nothing really good around ♪ ♪ turn around ♪ every now and then i get a little bit tired ♪ ♪ of living off the taste of the air ♪ ♪ turn around, barry ♪ finally, i have a manly chocolatey snack ♪ ♪ and fiber so my wife won't give me any more flack ♪ ♪ i finally found the right snack ♪ ♪ welcome back. the tax reform plan put forward today ain't perfect, but i want to say it's a super-growth measure. and senator ron wyden, i believe wyden with work with camp to
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make some of the tweaks to get things through. we have jared bernstein and steve moore, we're going to put them back in the batter's bock. steve, what did you hear? >> i don't great with everything, but this is a big day for tax reform. for my friends that are republicans in congress, i'm sick of the republicans being in this fetal position. this is a big issue for republicans. it's popular with voters, it's pro-growth, and jared, if you don't like this plan, let's see the democrats put something on the table. we haven't cleaned out the stables since ronald reagan was president. >> i like that point, as i said earlier, i think this is a good play to start the conversation. when you end accelerated depreciation, all you're doing is collecting same thing, he phases down the corporate race very slowly, so it looks better
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in this decade than the next. there are other timing problems, but these are problems i think can be managed. i don't like the way he goats after the earned tax credit, but again, we can talk about that. >> steve moore, is there enough in here to satisfy middle-class desires? i mean, i looked at the threshold, this is complicated. you have to go on the website, the joint tax committee, we don't know for sure, but it doesn't look to me like middle-class thresholds were helped that much. i think the gop has an issue with the middle class. >> i agree with that. with the republican position, the problem isn't the middle wage, it's the but you know what? if you do this kind of reform and get those rates down to somewhere near 25%, i think at the release a lot of growth, and people's wages will rise, which is the best way to balance the budget. >> i'm being much too agreement, so let me tell you something
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else. here is another fundamental problem with this plan and where i think we part company. revenue neutrality in and of itself is an adquality goal, and i don't believe this plan. we talked about infrastructure earlier, think about the demographic, so revenue neutrality is an unfortunate starting place. we're going to have to do better. >> that's a deal breaker, jared. the whole idea for the last 30 years is the trade. lower those tax rates in exchange for getting rid of loopholes. you want to use the money to dig more holes in the ground, why not reinvestment -- >> fix roads and bridges, fix -- improve our production capacity. let me say one quick thing, larry. i will definitely support some lower rates through the base broadening, but we don't have to go all the way with that. we can make some of those points and use them for increased
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revenues. >> steve, i'm going to give you the last word from your article this morning, and the chart that accompanied the article. we go through legitimate tax reforms with real reductions and real base broughtening, we're going to grow more, we're going to produce more revenues, and all this nay saying about revenue will be blown out of the water. in fact the wealthiest people dr i hate to see the surtax, but they're going to blow the lid off of it. it's not that high, really. >> larry, if you raise the growth rate from about 2.2 to even just 3.2% over the next decade, you get a trillion worth of revenue. we could build roads, do all these things -- >> if this plan raises the growth rate from 2.2 to 3.2, i will walk around for six months wearing a t-shirt same i'm a supply-sider. >> i'll make the t-shirt. thank you both very much. we have more proof for my
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call for a moratorium on obamacare is just what the doctor ordered. i'm talking about confusion, threatening language, penalties and taxes that no human being can possibly understand, and if i'm not mistaken, the i.r.s. has the story wrong. we'll have a discussion about this with grover norquist and howard dean to tackle all of this, and i'm waiting for howard to announce his candidacy for president. and later tonight is the premiere of "colorado pot rush" we'll talk about the host about rosie promises, but here's a clip. we're going to be right back. >> yesterday i was a state at-home mom. today i'm a state at-home mom who can legally smoke marijuana. >> they have come to the new frontier of recreational pot. >> is anybody high so far? >> i feel buzzed. >> yeah, i have the nice beginning of a light buzz. i'm sure another ten minutes or
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to nbcuniversal's coveragens of the biggest loser olympic winter games ever, with the most coverage of the most events on every device. and the most hours of streaming video on the nbc sports live extra app, including the x1 platform from xfinity. comcast was honored to bring every minute of every medal of nbcuniversal's coverage to every screen. so what's next? rio 2016. welcome to what's next. comcast nbcuniversal. welcome back to "the kudlow report." there's two very popular stories on our website. jeff cox joins us to explain. good evening, jeff. >> good evening, larry.
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thank you. we both know that in business you get what you pay for, and companies that have been spending a lot of money on lobbies have really gotten their money's worth. according to something called the lobbying index put out by strageis have ganged over 61% since the beginning of 2013. that index has beaten the s&p 500 every year since the year 2000. it's put out by stragei. what cnbc has learned there's companies like 3m, industrial firms, consumer firms like netflix and starbucks, technology firms like facebook, as well as yahoo!. it kind of all adds up. the other story was talking about how the richest areas of
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the country are bunched around washington, d.c. you can see the trend, where the money goes, the gains are. as an investor, you want to follow these companies. they're very aggressive, and it's paying off for them in a big way. all right. there you have it. many thanks, jeff cox, thank you for the update. take a listen to this, folks. >> despite all that good news, there's plenty of stories being told. >> that's the senate majority leader blasting the koch brothers saying any bad press about obamacare is all false. here's the latest. the i.r.s. released a new fact sheet with threatening language enforcing something called, quote, shared responsibility payments. so i want the administration to call it what it is. it's a tax hike. here now is former dnc chair
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howard dean and grover norquist, founders of americans for tax reform. grover, let me ask you this. i thought -- i know it's a tax hike. that's the easy part, but i thought when president obama was making one of his 30 changes without any legislative help, he said people with canceled plans could renew the plans, and he knew that would take a long time, and he was there for waiving the tax penalty for this year, which the i.r.s. is putting out as a threat. am i wrong? are they waiving the tax hike or not? >> well, they're promising to do it in some cases. however, the tax tips they put out kind of blows the cover, in thehood lines tax tips. inside nine times it's the shared responsibility payment, which is a long way of avoiding the word "taxes." it's only $95 this year. it goes up to $2,000 or more, at least minimum of 2085 in the
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future, so this tax is not only growing, and it's the shared responsibility payment if you're a democrat talking about it, but you might think of it as a tax, but in addition you have to fill out a bunch of paperwork to let the government know where you've been each month of the last year on whether or not you bought the approved kind of health care, and if you missed a month or get started late, you have to pay part of the tax. so it's a whole new collection of data. >> see, that's what i'm getting at. i don't think people understand this anymore. the president has made so many changes. he just goes out willy nilly and makes the changes and of course they hate the i.r.s. why don't we just stop this nonsense? >> well, first of all, this actually has to do with the individual mandate, which i never support supported in the first place, so thanks for asking me to come on and defend it. in fairness, i think it's not unreasonable to call it a shared responsibility tax or payment. i mean, that's not any worse
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than calling the estate tax the death tax. both sides do this. the idea is if you're not paying for health insurance, taxpayers are going to pay for your health care. you'll be catted to emergency room, and you'll get taken care of it anyway. the idea is that we all share that burden. if you don't have health insurance, you didn't buy into it, this is a penalty. it is a low penalty this year, because obviously there were problems with the start-up and so forth. so if you think that individual mandate is necessary, which i don't, then you do have to have an enforcement mechanism. howard has the story right, that's why i wanted him -- >> you just don't want me on your show anymore. >> i love having you on the show. i think we need a time-out. i don't think people it is, even people that want to go into the exchanges, i don't think they
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understand the rules of the road with all these changes. that's why i've called for a three-year moratorium, a time-out. i want no mandates, i want no taxes, i want no insurance bailouts, all right? i want no more deadlines. i think a three-year moratorium, let congress in its wisdom go back and study this thing and come up with a brand-new product, because this thing is insanity. >> well, a three-year moratorium would at least give them time in front of the american people to work out a health care reform. what we got before was sort of thrown together. remember, we were promised this would be the most transparent government in world history, that these bills would be negotiated in front of the c-span cameras. in fact there were back deals with a whole series of different industries which got special deals each and then contributed money to the lobbying. this was pay to pay. this was a paid for, pay to play
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construction thrown together. i think the administration believed there would be a democrat president, a democrat house, and democrat senate for the next eight year, and it didn't matter that their first attempt was junk, because every time a piece failed, they would move it in towards single payer, and it would fail into big government. the problem was they lost the house, and they can't do that willy nilly, which is why the president is doing it unilaterally. >> i do not agree with that view. first of all this is insurance reform, which is badly needed. the individual market in this country was a mess. one of the good things is it reformed it on a national basis. secondly -- >> i don't think it -- >> it was awful. >> the way they went about it -- it could have been insurance reform, but i don't think it is. >> it has been. you can't use preexisting conditions to refuse people health care anymore. >> i'm okay with that. >> that's the kind of stuff that's in obamacare.
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what about the 26-year-olds who can be on their parents' insurance? that stuff matters a lot. there's a lot of kids who have health insurance. >> time for them to get a job and move out. >> they can't afford it. >> i'm talking about the premium hikes. i'm talking about the tax increases. look, i'm talking about the roughly 30 changes the president has made, as i said before, willy nilly, on his own, and nobody understands where we are. like this or not, people -- whether you want to repeal it or not, isn't it time to step back and just get out of the batter's box and have another look at this? >> no, i think it's time to make this thing work and i think it can. there were plenty of things i didn't like and i said so, but this can work. the swiss and dutch both have a private universal health care system. we can do that here. it wasn't my choice. unlike grover, i would have liked to have a single pair. we didn't have that. i do think this is a soundly conceived systems. >> you can't be on a single
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payer. i've got to get out. she's already there. you've got to go differently. >> all right. >> howard dean, thank you very much. grover norquist, as usual, great to see you. we're waiting for a statement from governor jan brewer on the controversial bill. it was a very up-and-down day for stocks. we'll look at your money next. and ask one of our experts to explain why he wrote a piece today saying the fed is out of touch with the economy. oh, my goodness. next up on kudlow. [ male announcer ] whether it takes 200,000 parts, ♪ 800,000 hours of supercomputing time, 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. whether it's building the world's most advanced satellite, the space station, or the next leap in unmanned systems. at boeing, one thing never changes.
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get a complete vehicle checkup. only at your ford dealer. once again we have breaking news. governor jan brewer to speak about any moment. nbc news' jay gray is live in phoenix for us. are you talking to staff people? what are they telling you? >> reporter: yeah, a decision has been made, obviously, larry. the thought throughout the day is she's going to veto the measure. crowds are gathering with words that some decision has been made. really starting to gather in full gear at this point, waiting to hear that decision. again, most have thought she's going to veto the measure, but
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many have been left wondering why it's going to take so long. businesses like southwest airlines, american airlines, appearing, petsmart, which is based here, major league baseball with 15 spring training facilities in arizona, and the nfl, which has put a lot of pressure on the governor's office to veto it of course are scheduled to host the super bowl. >> here is governor brewer. >> i'm hire to announce a decision on senate bill 1062. as with every proposal that reaches my desk, i give great concern and careful over the situation and deliberate, especially to senate bill 1062. i call them, die spite the tears or boos from the crowd. i took the necessary -- to make the right decision. i spoke with my attorneys, lawmakers and citizens supporting and opposing this legislation. as governor, i have asked
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questions and i have listened. i have -- religious freedoms and specific and pressing concern exists in our state. i have record to prove it. my agenda is to sign into law legislation that advance arizona, when i address the legislation -- abundantly clear, among them are passing a responsible budget that continues arizona's economic comeback from ceo to entry prior neuroand business surveys, arizona ranks as one of the best states. additionally. our immediate challenge is fixing a broken child protection system. instead this is the first policy bill across my desk. senate big 1062 does not address a specific or present concern related to religious liberty in arizona.
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i've not heard one example in arizona where business owners' religious liberty has been vite violated. the bill is broadly worded and could result in unintended and negative consequences. after weighing all of the arguments, i have vetoed senate bill 1062 moments ago. to the supporters of this legislation, i want you to know that i understand that long-held norms about marriage and family are being challenged as never before. our society is undergoing many dramatic changes. however, i sincerely believe that senate bill 1062 has the potential to create more problems that this it purports to solve. i can't divide arizona in ways we could not even imagine and no one would ever want. religious liberty is a core american and arizona value. so is nondiscrimination.
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going forward, let's turn the ugliness over the debate over senate bill 1062 into a renewed search for greater respect and understanding among all arizonans and americans. thank you. all right. there you have it. governor brewer has vetoed the bill. interesting just as a footnote -- we're going to take a quick break and maybe talk some stocks. i want to remind people about the history of this legislation. i'm larry kudlow. we'll be right back. [ male announcer ] we don't just certify our pre-owned vehicles. we inspect, analyze, and recondition each one, until it's nothing short of a genuine certified pre-owned mercedes-benz for the next new owner. [ car alarm chirps ] hurry in to the mercedes-benz certified pre-owned sales event. visit today for exceptional offers. ♪ visit today for exceptional offers. ameriprise asked people a simple question: can you keep your lifestyle in retirement?
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we just heard governor jan brewer say she's going to veto the so-called sectionium discrimination bill on religious grounds. we're going to bring in paul hickey and kenny policy carri, and we're going to -- i want to talk about this rather than stocks, just for a second. nobody talks about this, kenny. there had been a bill passed in 1999 in arizona that was almost identical to this bill, almost identical. all those years, not a single lawsuit was brought. that's why i've been arguing, this is about business and capitalism, not religious discrimination, and i think it was business pressures that had governor brewer veto the bill. >> i think you're right. if you've been watching, even with what's been going on
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twitter, big business about never doingsh pulling out, whether it's the nfl or big corporate business that holds big corporate events, all of them standing up and saying absolutely not if this bill goes there you. >> in this kind of economic environment and all these businesses are putting pressure on, you're going to do the right thing and i think she did the right thing. >> i think if there was a history, particularly from the precedent of this law that i mentioned before, if there was a press didn't and history about lawsuits and so forth, she might have thought otherwise, business pressures or not. she's a very principled woman. you saw that with immigration, whether you agree with it or not. she's a very principled woman. the fed is out of touch with the economy. we only have a minute or two. ken policari, i saw it, and enjoyed reading it, but didn't know what you were talking about. >> when they talk about
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unemployment coming down, how much better the economy is doing, and whether they're starting to withdraw, i don't net think that joe q. public feel the same way. i think there's a complete disconnect. when the fed says it, people are scratching their heads saying, what am i missing? they say they tell me everything is so great. >> there's a lot of truth to that. a lot of truth to that. this has been a very subpar recovery, but as i say all the time, the federal reserve doesn't create jobs. they can create money. that's about tax incentives, then regulatory problems, but in my opinion obamacare. i mean, the fed can't do all the this stuff, and qe-3 i think is way beyond the point. >> i think things are slowly improving. the economic data that we've seen, i think weather is partly to blame. once the spring rolls around, we'll start to see some improvement in the indicators, but i mean, i do think we are seeing improvement in the economy. like you said it's subpar, it is
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subpar, but things are getting better, and the fed is slowly coming out of the picture. >> richard fisher made it very clear. >>. by crierself right now. >> i think sell the market. >> buy it. >> and we've got a buy and sell. be sure to watch the new documentary, folks, "marijuana in america, colorado pot rush" coming up tonight at 10:00 eastern. that's it for "the kudlow report." thanks for much whatting. we'll see you tomorrow night. because when it comes to feeling safe behind the wheel, going the distance and saving at the pump you want it all. get our multi-point inspection with a a synthetic blend oil change, tire rotation, brake inspection and more for $29.95 or less. get a complete vehicle checkup. only at your ford dealer. olet's say you pay your tguy around 2 percent to manage your money. that's not much, you think except it's 2 percent every year.
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